Property Market Remains Healthy As Gross Mortgage Lending Rise Reported By UK Council Of Mortgage Lenders
There are plenty of media reports suggesting that the UK property market may have stalled and some economists have even gone so far as to predict another property price crash may be on the cards.
However new figures published by the CML show that these statements are far from true as there has been a considerable rise in the value of gross mortgage lending recorded in the UK over the last month.
Figures published by the Council of Mortgage Lenders (CML) highlight a significant rise in mortgage lending volume during October 2014, with gross mortgage borrowing increasing by 5% from September this year to £19 Billion (GBP) making the total gross lending value 8% higher than during October 2013.This is the highest October total recorded by the CML since the record £33 Billion (GBP) was loaned to borrowers back in 2007
The increased lending volume represents a strengthening of demand among property buyers over recent months and bodes well for the UK residential sales market as well as the UK’s private rental sector heading into 2015 and beyond. Demand for property remains strong and it is only those who find themselves priced out of the market that are complaining, but that means more tenant demand for private rental sector accommodation, producing a double edged sword for the UK property market.
CML economist Mohammad Jamei commented on the results, stating:”As the temporary impact of implementing the mortgage market review fades, a clearer picture of the mortgage and housing market is emerging. Nearly all indicators in the housing market now align with Council of Mortgage Lender’s view of a gentle easing in market conditions and a subsequent upturn in mortgage activity.
Increased mortgage lending shows that the media reports are highly exaggerated and despite the increased difficulty in passing the stricter mortgage affordability criteria imposed by the introduction of the Mortgage Market Review back in April 2014, residential and buy to let mortgages are still relatively easy to obtain, so long as the borrower can afford the repayments.
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